London property prices rise by 20 per cent 'because of international buyers'

The value increase of 20 per cent for properties in London over the last year has been attributed to the demand from international buyers.

Earlier this week, a report by Knight Frank's Residential Research team found that overseas investors account for more than half of London's housing purchases.

This figure rises to more than 60 per cent in areas such as Mayfair, Hampstead and Knightsbridge.

Head of residential research at the property company Liam Bailey said: "The range of buyers has risen dramatically over the past year, as the weak pound created opportunities for overseas purchasers to enter the market with significant discounts on peak 2008 pricing."

He added that these discounts could be as much as 31 per cent on 2008 prices.

Meanwhile, the Edinburgh property market has also seen a resurgence after a report by Knight Frank revealed the interest from homebuyers has increased by 120 per cent over the last six months.